Head to Head Survey: ITC Holdings Corp. (ITC) vs. Pampa Energia (NYSE:PAM)

Pampa Energia (NYSE: PAM) and ITC Holdings Corp. (NYSE:ITC) are both utilities companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Valuation and Earnings

This table compares Pampa Energia and ITC Holdings Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pampa Energia $3.11 billion 1.62 $723.59 million $1.44 47.54
ITC Holdings Corp. N/A N/A N/A $1.54 29.55

Pampa Energia has higher revenue and earnings than ITC Holdings Corp.. ITC Holdings Corp. is trading at a lower price-to-earnings ratio than Pampa Energia, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Pampa Energia and ITC Holdings Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pampa Energia 0 1 1 0 2.50
ITC Holdings Corp. 0 0 0 0 N/A

Pampa Energia currently has a consensus target price of $72.00, indicating a potential upside of 5.17%. Given Pampa Energia’s higher possible upside, analysts plainly believe Pampa Energia is more favorable than ITC Holdings Corp..

Dividends

ITC Holdings Corp. pays an annual dividend of $0.86 per share and has a dividend yield of 1.9%. Pampa Energia does not pay a dividend. ITC Holdings Corp. pays out 55.8% of its earnings in the form of a dividend. ITC Holdings Corp. has increased its dividend for 5 consecutive years.

Insider and Institutional Ownership

44.4% of Pampa Energia shares are owned by institutional investors. Comparatively, 84.2% of ITC Holdings Corp. shares are owned by institutional investors. 3.2% of ITC Holdings Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Pampa Energia and ITC Holdings Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pampa Energia 3.37% 11.62% 2.17%
ITC Holdings Corp. 26.73% 16.53% 3.82%

Summary

ITC Holdings Corp. beats Pampa Energia on 8 of the 12 factors compared between the two stocks.

Pampa Energia Company Profile

Pampa Energia S.A. is an integrated electricity company. The Company, through its subsidiaries, is engaged in the generation, transmission and distribution of electricity in Argentina. Its segments include generation, transmission, distribution, oil and gas, and holding and others. Its generation segment includes a direct and indirect equity interest in Central Piedra Buena S.A., Central Termica Guemes S.A., Central Termica Loma de la Lata S.A. and Pampa Comercializadora S.A, among others, and investments in companies in the electricity generation sector. Its transmission segment includes an indirect equity interest through Compania Inversora en Transmision Electrica Citelec S.A. Its distribution segment includes an indirect equity interest in Electricidad Argentina S.A. and Empresa Distribuidora y Comercializadora Norte S.A. Its Oil and gas segment includes a direct interest in Petrolera Pampa S.A. Its holding and others segment includes financial investment operations, among others.

ITC Holdings Corp. Company Profile

ITC Holdings Corp. (ITC Holdings) is a holding company. The Company is engaged in owning, operating, maintaining and investing in transmission infrastructure. The Company’s business consists primarily of the electric transmission operations of its Regulated Operating Subsidiaries. Its Regulated Operating Subsidiaries include International Transmission Company (ITCTransmission), Michigan Electric Transmission Company, LLC (METC), ITC Midwest LLC (ITC Midwest). The operations performed by its Regulated Operating Subsidiaries fall into the various categories, such as asset planning; engineering, design and construction; maintenance, and real time operations. Its customers include investor-owned utilities, municipalities, cooperatives, power marketers and alternative energy suppliers. It owns and operates high-voltage systems in Michigan’s Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma.

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